Like other developing island countries, the Maldives experiences specific problems like narrow economic base, overdependence on tourism, lack of employment opportunities, and uncertain political environment. The weak macroeconomic situation has resulted in large economic imbalances, both in the domestic economy and in terms of the balance of payments. Over the years, the public debt has accumulated to an unsustainable level, while the country’s accession to middle-income status will see a reduction in concessional aid going forward.

In 2011, ADB developed an interim country partnership strategy (CPS), 2012-2013, for the Maldives and moved to the next phase of assistance - the resumption of investment lending.